Quote:
Originally Posted by TallMomof2
Many US retailers use loss leaders to draw in customers with the expectation that the customer will purchase other items that give the retailer a profit and offset the loss of profit from the loss leaders.
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Not just in the US, of course - it happens world-wide.
It's very common to sell products as loss-leaders; a classic example is the ridiculously low price of printers; the printer is basically given away for next to nothing as a way of selling ink, which is where all the profit lies.